US President Barack Obama has signed the American Recovery and Reinvestment Act into law, the $789 billion economic stimulus package that contains a variety of provisions valuable to energy efficiency and low-carbon technology industry.
The bill signed today in Denver, Colorado, extends the three-year Production Tax Credit (PTC), through 31 December 2012, provides a new 30 per cent investment tax credit that will provide over $2.3 billion to invigorate domestic renewable energy manufacturing and create clean energy jobs and will target provisions, including funding, to encourage renewable and electricity transmission. It also extends the placed-in-service date for biomass, geothermal, hydropower, waste-to-energy, marine and renewables for more than ten 10 years at a cost of more than $13 billion.
Around $30 billion will be allocated to research and development of smart grid transmission, grid modernization projects and energy efficiency measures.
The bill targets investments towards key areas that will save or create good jobs immediately, while also laying the groundwork for long-term economic growth.
The renewable energy industry has been buzzing with excitement. The bill would provide credits to renewable energy, energy storage, energy conservation, carbon capture and storage and other technologies. “I think it will help Colorado gain prominence in the renewable energy arena,” said Blake Jones, president of Boulder’s Namaste Solar Electric Inc., “The stimulus package is a shot in the arm,” said Roby Roberts, the senior vice president of external affairs for Vestas, the Danish wind turbine manufacturer.
Welcoming the new economic stimulus bill,
Vestas President and CEO Ditlev Engel said, “We highly welcome the provisions of the stimulus bill related to renewables and wind energy. This is exactly the kind of action and short-term follow up from the new administration we have been calling for from the industry. It is a good first step for the necessary new changes which are needed in the American electricity sector in order to have more energy independence and a cleaner energy production,”.
Senior Vice President, Vestas Group Government Relations, Peter C. Brun further explained the significance: “This is the first time in the US we have ever seen such long regulatory stability in terms of a multi-year Production Tax Credit until 31 December 2012. Previously, the PTC extensions were only one or two years constituting big risk and uncertainty for both investors and manufactures like Vestas. So we regard this development as a major positive development in the US market.”
Nearly $1.6 billion would go to the Clean Renewable Energy Bonds program, to finance power generation facilities from hydropower, wind, geothermal, biomass, marine and other renewable sources. Another $1.6 billion will go to the “Department of Energy's Office for Science for research on nuclear physics and fusion energy, as well as for biofuel technology development and climate change study”,
according to Power Engineering International.
